Financial Planner and Financial Planning

Financial planning isn’t just about hiring a financial planner to set your financial goals and hit a target. This process happens every day; almost every decision from getting up in the morning and going to work or buying your morning coffee involves finances.

Life isn’t just about enjoying every moment, it’s about preparing for what’s ahead, and getting stronger in the process. This is exactly why financial planning exists.

It determines the goals and strategies needed to succeed in different stages of life whether it be budgeting wisely, getting out of debt, traveling overseas often and planning a well-deserved retirement.

You need to plan for your finances, even if it’s just uttering the next steps in your mind. But steps can only be taken after checking your financial situation. Your savings, your earning and your spending.

When things become overwhelming and you don’t really get a grasp of your finances, like you can’t save anything or can’t reduce your debt, you may want to go to a certified financial planner.

Hiring a planner could be seen as an investment to be financially more secure in times to come.

1. What Is A Financial Planner?

A financial planner is one type of financial advisor that has experience in different areas of finances including, but not limited to, estate planning, insurance, stock investments.

They determine what stage you and financial status you are in, and assist you in achieving a financial goal.

They are trained professionals who have taken up a curriculum and post-studies as part of being a Certified Financial Planner (CFP).

2. How Is A Financial Planner Different From A Financial Coach, Consultant and Investment Advisor?

Financial planners help you achieve what the financial goal you have in mind, they don’t necessarily pitch you investment products or securities available in the market, unlike most financial advisors under an organization.

Their expertise can go as far as managing debts, saving up for a new house, getting the right insurance or planning your retirement.

Financial coaches tackle more of the ‘ having the right mindset’ when it comes to handling money, while consultants educate and influence you on strategies needed to grow your personal or business finances.

Investment advisors purely give advice on what type of investment you can benefit from.

3. Why Is Financial Planning So Important?

Missing out on the key elements to financial planning can ruin one’s life; without it, we can become anxious about the assets we currently have and make bad financial decisions leading to bad credit or unanticipated expenses, which will affect our quality of living.

This is why it is essential to have a step-by-step financial plan and a financial planner by your side every step of the way.

4. What Are The Key Elements of Financial Planning?

Some of the steps that individuals need to know about finances are budgeting, insurance, cutting expenses, paying debts, and planning one’s retirement.

Their financial planner will guide them in the process from organizing their cash flow, calculating income needed for their dream vacation or goal of attaining a master’s degree, and other financial goals that the individual has.

For individuals having existing assets in a business, financial planners help them reach a smart goal involving tax planning, employee benefits, improving in the stock market and accounting for every cent that they’ve worked hard for.

Financial planning is a planned process that is not subject to trial and error, rather it is based on facts and precise action plans that will shape the individual’s overall financial status.

Financial planning does not end with a signed agreement with the financial planner; it continues to be a beneficial relationship between both the individual and financial planner.

The financial planner monitors progress and identifies key tools that can help the individual reach their goal.

Readers, make sure you plan your finances and for that, you need to know where you stand. A free tool like personal capital may help you know your current financial help. Then, as a next step, you may become your financial planner or you may hire a qualified individual.

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